Question: What Qualifies As A Utility For PPP?

What utilities are covered under PPP?

The following are all considered forgivable utilities expenses for the PPP:Electricity.Water bill.Gas.Sewage.Telephone (cell phone and landline)Internet bill.Transportation costs..

What expenses are eligible for PPP?

Business expenses on electricity, gas, water, transportation, telephone, or internet access are eligible uses of PPP funds and qualifies for forgiveness.

Should I apply for Eidl or PPP?

How do I take advantage of both loans? Since the PPP and EIDL cannot be used towards the same expenses, the best practice is to use the PPP for any payroll expenses and the EIDL for all other working capital. This will ensure that you can get the PPP forgiven while still covering your business expenses.

Do real estate investors qualify for PPP?

All types of businesses are hoping for relief in the form of loans pursuant to the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act. … Real estate management companies are not considered passive and are therefore eligible for PPP.

What defines a utility?

noun, plural u·til·i·ties. the state or quality of being useful; usefulness: This chemical has no utility as an agricultural fertilizer. something useful; a useful thing. a public service, as a telephone or electric-light system, a streetcar or railroad line, or the like.

Can owners salary be included in PPP?

The reason for this is that independent contractors are self-employed and, thus, can apply for their own PPP loans (as of April 10, 2020) to cover the pay they would have received and other expenses. … Payroll costs can include wages, commissions, income, or net earnings from self-employment.

How are PPP loans calculated?

How PPP loans are calculated. PPP loans are calculated using the average monthly cost of the salaries of you and your employees. But if you’re a sole proprietor, your PPP loan will be calculated based on your business’ net profit. Your salary as an owner will be defined through the way your business is taxed.

Does a bank statement count as a utility bill?

No. A utility bill is a bill sent to you for service by a utility company. In other words, it’s a service relationship, tied to your address. No a Bank Statement does not count as a utility bill, many institutions that ask for such information usually have lists of acceptable documents.

Can Schedule E apply for PPP?

The Interim Final Rule provides guidance for Schedule C taxpayers but is silent on the eligibility of Schedule F farm income or Schedule E rental income to be included in the PPP. … The Interim Final Rule only provides guidance for those with self-employment income in 2019.

What is FTE for PPP?

The Small Business Administration (SBA) defines a Full-Time Equivalent employee [FTE] as “an employee who works 40 hours or more, on average, each week.” The hours of employees who work less than 40 hours are calculated as proportions of a single FTE employee and aggregated.

What is considered as a utility bill?

Generally, utility expenses include electricity, gas, water/sewage and garbage disposal. Sometimes, other services such as internet, cable TV and phone services are considered to be additional utilities since they are now considered standard in most American households.

Can I apply for both PPP and unemployment?

It’s possible to take advantage of both programs, but you cannot have both at the same time. If you are collecting unemployment benefits and also have a PPP you are claiming owner compensation replacement from, you should report your PPP loan as income to your state’s unemployment resource.

Which is better PPP or EIDL?

EIDLs offer advances up to $10,000 that do not need to be repaid, while PPP loans provide small business loans equal to 2.5 times their average monthly payroll, up to $10 million. … Loan forgiveness is available for PPP loans if the business follows specific loan forgiveness rules from the SBA.

What documents do I need for PPP forgiveness?

For the payroll portion of your PPP loan, you will need to provide documents from your payroll provider and proof of paying employment taxes with IRS and state forms. Eligible payroll costs include salaries and wages, health benefits, and paid leave (i.e. vacation, parental, family, medical, or sick leave).

How do you calculate PPP forgiveness?

Potential forgiveness amounts (60% payroll requirement) This shows you the total of your payroll and non-payroll costs, minus your wage reduction amounts, then multiplied by your FTE reduction quotient.

Do real estate agents qualify for PPP?

Businesses with fewer than 500 employees — including sole proprietors, independent contractors, and other self-employed individuals — all qualify for PPP loans. Since most real estate agents are independent contractors, they are likely to qualify for PPP loans. … SBA will loan borrowers up to $10 million.

Can a landlord apply for PPP?

Landlords are not limited to the PPP in seeking aid under the provisions of the CARES Act. … Any business with not more than 500 employees can apply for an EIDL, and the CARES Act provides for $10 billion in additional funds to be used for this program.

Can you receive PPP and Eidl?

The SBA has two loan programs to help small businesses impacted by COVID-19: Economic Injury Disaster Loans (EIDLs) and the Paycheck Protection Program (PPP). If your business is eligible, you can get both of these loans and use the funds at the same time, as long as you don’t use them for the same purpose.

When can I apply for PPP forgiveness?

Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination.

Is cell phone considered a utility for PPP?

UTILITIES. Utilities are the last qualified expense under the PPP program. … Similar to previous qualified expenses, it is important that these service contract agreements predate February 15, 2020. CWA Interpretation: For our clients, we feel that both office telephone lines and cell phones are qualified expenses.

What can I use if I don’t have a utility bill?

Documents That Can Prove Residency (Besides Utility Bills)Bank Statements. Document description: Preprinted account statements from your bank. … Court Letters. … Government Documents. … Income Tax Statements. … Lease Agreements. … Notarized Affidavit of Residency. … School Records. … Vehicle Registration.